DBS Bank India has extended a sustainability-linked trade facility (SLTF) of INR 670 crore to Indorama India Private Limited, marking the largest such transaction arranged by the bank to date. The facility reinforces DBS Bank India’s commitment to responsible banking and its support for clients integrating sustainability into their growth strategies.
Largest sustainability-linked trade facility by DBS India
The facility has been extended to Indorama India Private Limited, a wholly owned subsidiary of Indorama Corporation Pte Ltd. Designed to encourage sustainable manufacturing within eastern India’s fertiliser sector, the transaction highlights DBS Bank India’s expertise in structuring complex, cross-border trade finance solutions.
By linking access to capital with clearly defined environmental performance targets, the facility enables Indorama India to align its operational growth with sustainability objectives.
Financing linked to measurable environmental targets
The sustainability-linked structure ties financing to improvements in greenhouse gas emissions intensity, water use intensity and energy intensity. This approach ensures that funding is directly connected to Indorama India’s progress towards reducing its environmental footprint.
The facility is aligned with globally recognised Sustainability-Linked Loan Principles, ensuring transparency, measurability and independent verification of performance against agreed sustainability targets.
Comprehensive trade finance support
The SLTF encompasses Letters of Credit (LC), Purchase Invoice Financing (PIF) and Buyer’s Credit Import Advance (BCIA). Together, these instruments will support Indorama India’s working capital requirements across trade, procurement and broader business operations.
The structure allows operational flexibility while encouraging long-term sustainable manufacturing practices.
Leadership commentary on sustainable finance
Divyesh Dalal, Managing Director and Country Head – Global Transaction Services, Corporate Banking – Financial Institutions and SMEs, DBS Bank India, said that responsible banking remains central to the bank’s client engagement model. He noted that sustainability-linked financing allows DBS to align capital deployment with long-term environmental outcomes while supporting clients in embedding sustainability into their growth plans.
Manish Kumar Agarwal, CFO of Indorama India, said the partnership with DBS strengthens the company’s liquidity position while reinforcing its commitment to ESG principles. He added that the transaction reflects Indorama’s continued focus on responsible growth and sustainable finance integration.
Part of a broader sustainable finance portfolio
The transaction builds on a series of sustainable finance mandates arranged by DBS Bank India in 2025. In December, the bank acted as sole adviser and green loan coordinator for an INR 1,280 crore green loan for Tata Realty and Infrastructure Ltd. Earlier in June, it structured a USD 80 million green financing for Aseem Infrastructure.
Across the wider DBS Group, sustainability-linked trade finance continues to gain momentum. In January 2025, DBS Bank Indonesia announced a USD 20 million sustainability-linked trade finance facility for PT Indo-Rama Synthetics Tbk, following a USD 10 million credit facility in 2024.
Industry recognition for DBS bank India
DBS Bank India has continued to receive industry recognition for its corporate and sustainable finance capabilities. In 2025, the bank was awarded Best Bank for Corporate Banking and Best Bank for Corporate Cash Management by CRISIL Coalition Greenwich. In 2024, Global Finance named DBS the Best Bank for Sustainable Finance in India.
